Enova International agreed to buy OnDeck Capital Inc., an online small business lender, in a cash and stock deal valued at $90 million, or $1.38 per share.

Enova will pay a premium of 43% above the 90-day weighted share price of OnDeck, and a 90% premium based on OnDeck's closing share price of 73 cents as of July 27.

Enova, which lends to small businesses and subprime consumer borrowers, will add the OnDeck brand to its portfolio. The combined companies had $4.7 billion in loan valuations in 2019 and served 7 million customers.

"They are a leader in non-bank lendings to small businesses," David Fisher, chairman, president and CEO of Enova, told analysts on a quarterly earnings call yesterday. "And we believe this transaction brings together two highly complementary market-leading businesses with world class capabilities in both consumer and small business lending."

The deal is expected to result in $50 million in annual cost synergies and $15 million in run rate-net revenue synergies to be fully phased in by the end of 2022.

Fisher will remain in his position and OnDeck chairman and CEO Noah Breslow will become vice chairman of the combined company.

"Following an extensive review of our strategic options, we believe this is the right path forward for our customers, employees and shareholders," Breslow said on the call. "Joining forces with Enova, a highly respected and well capitalized leader in online lending, and leveraging our combined scale and strength, provides the best opportunity for our long-term success."

Just last month, OnDeck was notified by NYSE that it no longer met listing standards due to its slumping share price of late. A spokesperson told Mobile Payments Today last month that OnDeck would resume lending following the months-long shutdown related to the COVID-19 pandemic.

On a pro forma basis, the combined firms had gross revenue of $1.65 billion in 2019, while adjusted earnings would have been $215 million.